"Police sources said the initiative was the first of its kind in the UK that sought to monitor a population seen as being 'at risk' of extremism."

So this wasn't a one-off moment of madness – but the first step in a plan that could act as template for police forces elsewhere.

Project Champion is name of the scheme, under which counterterrorism police installed about 200 cameras in Birmingham's largely Muslim suburbs of Washwood Heath and Sparkbrook, some of them hidden from public view.

The cameras were positioned so residents could not enter or leave the neighbourhoods without their cars being tracked, and the data was to be stored for two years. Local councillors were not told that the cameras were paid for with money from the "terrorism and allied matters" fund. No, I've no idea what an "allied matter" is either.

This is an awful example of treating entire Muslim communities as suspicious and their democratic representatives as too unreliable to be trusted.

It stems from the same mentality that saw parts of the "Prevent" anti-extremism programme degenerate into police forces spying on Muslims' political and religious views.

It is no accident that this has happened in Birmingham. Last year an Institute of Race Relations report revealed that Prevent work in Birmingham was being directly managed by a counterterrorism police officer.

Putting counterterrorism officers in charge of community relations turns community relations into part of counterterrorism policy. Bad Idea. Project Champion also shows that senior police officers consider their policies above democratic accountability.

There was no formal consultation over the scheme. Local councillors were apparently misled into believing the scheme was to tackle antisocial behaviour, drug dealing and vehicle crime.

Incredibly, Project Champion has not yet been axed. Officials have implied that a retrospective consultation will show this project is not about terrorism but other types of crime.

This is ridiculous. Either this project is about counterterrorism and entire communities are being monitored, or it is about crime and antisocial behaviour, in which case it shouldn't be getting money from a counterterrorism fund.

It is not credible to claim that so much counterterrorism money would be distributed to an initiative designed to tackle antisocial behaviour and vehicle crime – otherwise every local authority in the country would be applying, given the current economic climate.

And those who think mass surveillance like Project Champion would help against terrorism should recall the parliamentary intelligence and security committee report (pdf) into the 7/7 attacks.

The report found that while MI5 was aware of ringleader Mohammad Sidique Khan long before 7/7, it did not have the resources to focus intelligence-gathering efforts on him as he was not suspected of being an actual threat to national security.

On that basis, glorified speed cameras won't stop terror plots unless a terrorist cell runs through the streets of Birmingham advertising its intentions as if auditioning for Chris Morris' Four Lions – and then gets into a car with personalised number plates.

This case will cause distrust of the police among members of the very communities whose trust they need. It wouldn't surprise me if more rational police officers have their heads in their hands at the behaviour of their colleagues here.

Those of us that are engaged in working to challenge sectarianism and extremism, be it from Muslim or other communities, can do without schemes like this that stigmatise British Muslims.

I've a suggestion for those behind Project Champion. Go to whoever is in charge of education, culture and youth services in Birmingham City Council, get a list of the organisations most active in Washwood Heath and Sparkbrook, give them the £3 million and leave them alone to get on with working with young people to raise their aspirations and improve their educational, cultural and economic opportunities. A much better idea than this debacle.